Question

Briefly explain reform and opening of the Chinese economy after 1978 including the Southern Tour and changes after the Southern Tour.

Answer 1

The growth rate experienced by china after 1978 till 2013 is 9.5% to 11.5%. The reason behind such transition and reform was rising in the total factor productivity. The growth experienced by china in term of GDP per capita ranges from 2.7 percent to 15.7 percent. The reason behind such changes was an outcome of the southern tour of Deng Xioping that was not based on power and pomp of the dynasty of Qing and Ming. The local leaders started following the strategy of reform and opening after the southern tour, which is the primary reason behind what China stands today.

The beginning of reform took place from agriculture business and later transitioned to the urban industry wherein introduction of the dual price system took place. Exponential growth was seen in the automobile sector of China between the period of year 1975 and 1982. Thus, it can be concluded that the said events clearly reflect how the transformation has taken place in china after the southern tour from the planned economy to a social market economy.